Study On China's Cultural Industry Agglomeration Dynamic Mechanism

With the arrival of knowledge economy, the output value of cultural industry occupies more and more share of GDP in countries around the world; the cultural industry has quickly become the engine of economic growth in the world. Today, the cultural industry has been the key industry in stimulating economic growth in many developed countries. For example, in USA, the value of export of film is second only to that of aviation products, ranking the second in USA; the Japanese industry of anime, record and publishing has occupied half of the global market. In the21st century, China becoming a global manufacturing industry base, people’s material wealth has enriched dramatically, but the cultural products which meeting people’s spiritual needs are relative deficient. Now it is urgent to improve the status of cultural industry during the course of industry transformation and upgrading, and promoting domestic demand in China."National cultural reform&development plan outline in ’twelfth five-year’period" which enacted in February2012put forward that the cultural industry in China will become the pillar industry taking a more than5%share of GDP in2015.At first, the thesis retrospects the development of cultural industry for nearly10years in China:the number of institutions and personnel of cultural industry shows an increase at an average annual rate of5%; the investment of cultural industry increased slowly between2000-2006, rose rapidly during2006-2008, made an unprecedented leap from2008to2009, and remains high steady growth after2010. And then, the thesis analyzes the agglomeration level of the cultural industry in our country by using the approaches of absolute concentration ratio, Location Quotient and Theil index, and clearly displays the space differences of development level of the provincial cultural industry, Location Quotient on the basis of supply, and Location Quotient on the basis of demand using of the software of ArcGIS. The study shows that the level of regional disequilibrium is low in the development of China’s cultural industry, and had the trend of balanced development; the overall difference of the cultural industry development level among provinces in China come mainly from the eastern areas; the provinces which have high level of development of cultural industry concentrate in the central and eastern regions, and the provinces which have high agglomeration level of cultural industry based on the perspective of supply mostly lies in the western areas, however the provinces which have high agglomeration level cultural industry on the basis of demand concentrate upon the western and eastern areas. The results of the three evaluation indicators differ greatly, which indicates that the development of cultural industry in China has yet not make full use of local supply capacity to realize optimal development, and also has a certain gap in fully meeting the cultural consumption demand of local residents.In consideration of the existence of space difference of agglomeration level of cultural industry in China, the dynamic mechanism of cultural industry agglomeration which accounts for the difference is the core issue of this thesis. At first, this thesis analyzes the factors promoting cultural industry agglomeration by the approach of qualitative analysis:knowledge spillover, freeness of trade, the demand of local market, production factor endowment, the incentive of government policy, good geographical location, historical and cultural resources endowment, and etc. And then, this thesis discusses the dynamic mechanism of cultural industry agglomeration with the help of the classic model of spatial economics:revised TP model by changing the assumptions. Under the framework of general equilibrium analysis of monopolistic competition and increasing return to scale of the new economic geography model, the TP model adds the factor of knowledge innovation and transfer, so the centripetal forces of economic activities include not only economic connection, but also knowledge linkage. The thesis argues that the innovation and diffusion of knowledge can promote economic agglomeration. The TP model analyzes under the general equilibrium conditions of consumers’ utility maximization and manufacturers’profit maximization, it assumps that cross-regional flow of intellectuals in initially symmetrical two regions happens because of pursuing higher real wages. This paper gets the following conclusions:when the intensity of knowledge transfers among regions is certain, the efficiency of knowledge innovation is the lowest under the conditions of symmetrical distribution of intellectuals; and the efficiency of knowledge innovation is the highest under the conditions of Core-Periphery distribution of intellectuals. There is positive correlation between the shares of culture product manufacturing enterprises and expenditure in northern area (or southern area), in which the coefficient is greater than1. That means that when the share of expenditure rising, the share of enterprises rising more. That is to say, there is amplification effect in local market. This thesis argues the increase of trade freeness is helpful for promoting cultural industry agglomeration, and the consumers prefer more diversified products that can also accelerate the space agglomeration of cultural industry.This thesis empirically tested the above conclusions of theoretical analysis by using the panel data of31provinces from2001to2011, the results of the panel model validate the theoretical hypothesis:the more knowledge spillover, the higher the degree of cultural industry concentration is; the higher the degree of trade freeness is, the higher the degree of cultural industry concentration is; the larger the market scale is, the higher the degree of cultural industry concentration is; the level of cultural industry agglomeration is higher if the areas have abundant factor endowments; the level of cultural industry agglomeration is higher if areas have more support from governments.In the end, this thesis put forward suggestions of promoting the development of cultural industry and optimizing the agglomerational development of cultural industry: improving the government’s abilities in management and service; promoting the construction of cultural industry clusters districts and cultural consumption market; attaching great importance of talent team construction; extending cultural industry chain; increasing the trade freeness of cultural products; perfecting the investment and financing mechanism of cultural industry.